What changed
Previously, all OTC G-sec trades had to be reported to NDS-OM by end of trading day. Now, FPIs and their custodian banks get a three-hour window after market close to report. Domestic counterparties continue reporting as per existing rules, and CDSL will disseminate trade info once one leg is reported with a qualifier.
What it means for you
This gives FPIs and custodian banks more operational breathing room for post-trade reporting, reducing settlement risk from tight deadlines. For domestic banks, no change in reporting obligations, but they must use a qualifier when reporting FPI trades to indicate pending counterparty confirmation. Overall, smoother FPI participation in G-sec markets.
What you must do
- Ensure domestic counterparties continue reporting OTC G-sec trades to NDS-OM as per existing practice.
- When reporting trades with FPIs, add the required qualifier to indicate the trade awaits counterparty confirmation.
- Coordinate with custodian banks to align on the new three-hour post-close reporting window for FPI trades.
- Review CDSL operational guidance for any additional steps or system changes.
Who it affects
Foreign Portfolio Investors (FPIs), Custodian banks, Domestic counterparties trading G-secs with FPIs, All participants in the Government securities market
What is the new reporting timeline for FPI G-sec trades?
FPIs and custodian banks must report OTC trades in government securities to the NDS-OM platform within three hours after the close of trading hours for the G-sec market.
Do domestic counterparties have any new reporting requirements?
No, domestic counterparties continue to report as per existing practice. However, when reporting trades with FPIs, they must use a qualifier to indicate the trade is awaiting counterparty confirmation.
When does this direction take effect?
The direction comes into effect from June 14, 2021.